How Do I Buy Junk Bonds?

How Do I Buy Junk Bonds?

1 Answer

  1. Its interesting to see that the investors categorize junk bonds as either “Fallen Angels” or “Rising Stars.” So do know this before hand that you can either gain a lot or you can lose a lot, you need to accept the risk that comes with it. Hence it’s advisable to only buy them in the expansion phase of the business cycle. You could then take advantage of the higher return with the minimum amount of risk.
    There are ways in which you can purchase junk bonds it can be done either individually or through a high yield fund through your financial adviser. Funds are the best way to go for the individual investor because they are run by managers with the specialized knowledge needed to pick the right bonds. Keep in mind that many funds forbid you from withdrawing your investment for the first year or two. Also there’s another way to invest and that is through junk bond exchange-traded funds.

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